Is South Plains Financial, Inc. (Texas) overvalued or undervalued?

As of 3 October 2025, the valuation grade for South Plains Financial, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 12, which is higher than some peers like CrossFirst Bankshares, Inc. with a P/E of 10.04, and Mercantile Bank Corp. at 9.69. Additionally, the EV to EBITDA ratio stands at 2.13, which also suggests a relative premium compared to the industry.
In comparison to its peers, Cantaloupe, Inc. is rated very attractive with a P/E of 13.56, while South Plains Financial's valuation metrics do not support a similar premium. The stock has shown a YTD return of 11.86%, which lags behind the S&P 500's return of 14.18%, and over the last three years, it has returned 38.97% compared to the S&P's 82.57%. This performance further reinforces the notion that the stock may be overvalued at its current price of 38.87.